The report highlighted that the number of companies with a market cap of over Rs 1 lakh crore increased significantly between FY02 and FY24, with their share of the total market capitalisation of NSE-listed companies rising from nearly 18 per cent to over 60 per cent.
This growth is attributed to India’s strong economic fundamentals, implementation of crucial reforms, surplus global liquidity after the 2008 financial crisis, and a steadily expanding investor base.
The report said, “The number of companies with over 1 lakh crore market cap have increased by over 40 times between FY02 and FY24.”
The report further stated that the market capitalisation of the top 10 companies has grown 28 times over the last two decades. Their profits and assets have increased by an average of 15.4 per cent and 16 per cent, respectively, each year over the past 20 years.
In FY02, only one company had a market capitalisation exceeding Rs 1 lakh crore. By FY04, this number had grown to two, and in FY10, it increased to 14, with a combined market cap of Rs 21.2 lakh crore.The Global Financial Crisis of 2008 caused a temporary decline, but global liquidity infusion, key economic reforms such as easing FDI limits and fuel price deregulation, and improving political stability helped the markets recover.By FY15, the number of companies with over Rs 1 lakh crore market cap rose to 22, with a total market cap of Rs 43.8 lakh crore. This growth continued, with 30 companies reaching this milestone by FY19, taking their total market cap to Rs 73 lakh crore.
The COVID-19 pandemic in FY20 disrupted financial markets, reducing the number of such companies to 20, with a total market cap of Rs 51.8 lakh crore. However, post-pandemic policy measures, strong economic recovery, and rising domestic participation fuelled a sharp rebound.
As a result, the number of companies with at least Rs 1 lakh crore market cap soared to 81 in FY24, out of the total 2,439 listed companies. In value terms, the total market cap of these companies stood at Rs 234 lakh crore, accounting for over 60 per cent of the total market cap.
This remarkable rise in high-market-cap companies’ showcases India’s economic resilience, market depth, and investor confidence.
As reforms continue and the economy expands, the number of companies crossing the Rs 1 lakh crore market cap threshold is expected to grow further, reinforcing India’s position as a key player in global markets. (ANI)
